AMA Group Limited

AMA Group reported first-half FY '26 revenue of $524.1 million, up $29.6 million or 6% year over year, and normalized pre-AASB 16 EBITDA of $30.5 million, up $5.5 million or 21.9%. EBITDA margin improved from 5.0% to 5.8%, core vehicle collision repair EBITDA margin improved from 5.4% to 5.9%, and operating cash flow after lease costs was $12.2 million, up $1.7 million or 16.2%. Segment highlights included Capital SMART revenue of $245.9 million and EBITDA of $24 million; AMA Collision revenue of $194.1 million and EBITDA of $6.1 million; Wales EBITDA of $3.8 million; and ACM Parts EBITDA of $0.7 million. Net debt was $20.7 million at 31 December 2025 versus $17.7 million at 30 June 2025. Management maintained FY '26 guidance for normalized pre-AASB 16 EBITDA of $70 million to $75 million and said CapEx is still forecast at $40 million for the year.

Raymond Smith-Roberts emphasized that the group is making steady operational progress and is on a path toward a 10% EBITDA margin in its core collision business, though he said the speed of getting there remains the main challenge. He highlighted stronger volumes in many regions, better performance in Collision and Specialist, and said ACM Parts is becoming strategically more important as it improves. His tone was upbeat but measured, acknowledging that some first-half expectations were not fully met while stressing that the business is “in good shape” and moving in the right direction.

Domenic Romanelli focused on the improvement in earnings, margins, cash generation, and funding costs. He said finance costs fell by $1.5 million year over year, with finance cost other down $3.7 million due to better funding and debt levels after the February 2025 refinancing, partly offset by a $2.2 million increase in lease finance costs from higher rents and interest rates. He also noted no dividend for the first half of FY '26, net debt of $20.7 million, positive operating cash flow of $12.2 million, and CapEx payments of $15.3 million, which were mainly for greenfield sites, replacement equipment, and site expansions.

Analysts pressed management on volumes, especially after weakness in September and October, and asked how the rest of the year was shaping up. Management said volumes were improving overall, with Victoria still softer but New South Wales, Queensland, Western Australia, South Australia, Tasmania and Canberra generally strong; Ray also said the group averaged 4,772 repairs per week in the first half versus a 5,000 target. On ACM Parts, Ray said the business is going well and is more strategically important if it continues to improve, though it could be considered for sale if someone made a compelling offer. On CapEx, management kept the full-year forecast at $40 million and said some site expansion and rationalization costs will make second-half CapEx slower, though they still expect positive free cash flow.